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MetLife Announces Third Quarter 2012 Results

MetLife, Inc. does not undertake any obligation to publicly correct or update any forward-looking statement if MetLife, Inc. later becomes aware that such statement is not likely to be achieved. Please consult any further disclosures MetLife, Inc. makes on related subjects in reports to the SEC.

MetLife, Inc.

Consolidated Statements of Operating Earnings Available to Common Shareholders

(Unaudited) (1)

For the Three Months Ended

For the Nine Months Ended

September 30,

September 30,

2012

2011

2012

2011

(In millions)

(In millions)

OPERATING REVENUES

Premiums

$

9,080

$

9,319

$

27,326

$

27,121

Universal life and investment-type product policy fees

2,048

1,906

6,056

5,646

Net investment income

5,048

4,961

15,297

14,746

Other revenues

435

418

1,313

1,232

Total operating revenues

16,611

16,604

49,992

48,745

OPERATING EXPENSES

Policyholder benefits and claims and policyholder dividends

8,995

9,604

27,066

27,315

Interest credited to policyholder account balances

1,589

1,534

4,653

4,521

Capitalization of DAC

(1,301

)

(1,524

)

(3,976

)

(4,151

)

Amortization of DAC and VOBA

1,051

1,162

3,231

3,295

Amortization of negative VOBA

(155

)

(150

)

(456

)

(476

)

Interest expense on debt

286

327

898

978

Other expenses

4,120

4,332

12,414

12,363

Total operating expenses

14,585

15,285

43,830

43,845

Operating earnings before provision for income tax

2,026

1,319

6,162

4,900

Provision for income tax expense (benefit)

579

324

1,758

1,376

Operating earnings

1,447

995

4,404

3,524

Preferred stock dividends

30

30

91

91

OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS

$

1,417

$

965

$

4,313

$

3,433

Reconciliation to Net Income (Loss) and Financial Statement Line Item Adjustments from GAAP

Operating earnings

$

1,447

$

995

$

4,404

$

3,524

Adjustments from operating earnings to income (loss) from continuing operations:

Net investment gains (losses)

22

(55

)

(152

)

(309

)

Net derivative gains (losses)

(718

)

4,196

(604

)

4,233

Premiums

16

23

60

69

Universal life and investment-type product policy fees

83

92

250

210

Net investment income

469

(709

)

1,139

(88

)

Other revenues

20

302

132

646

Policyholder benefits and claims and policyholder dividends

(303

)

202

(942

)

(191

)

Interest credited to policyholder account balances

(513

)

796

(1,028

)

417

Capitalization of DAC

1

3

5

7

Amortization of DAC and VOBA

43

(556

)

30

(616

)

Amortization of negative VOBA

15

20

50

60

Interest expense on debt

(40

)

(98

)

(128

)

(282

)

Other expenses

(263

)

(420

)

(1,187

)

(1,147

)

Goodwill impairment

(1,868

)

-

(1,868

)

-

Provision for income tax (expense) benefit

632

(1,349

)

1,048

(1,105

)

Income (loss) from continuing operations, net of income tax

(957

)

3,442

1,209

5,428

Income (loss) from discontinued operations, net of income tax

-

8

17

(1

)

Net income (loss)

(957

)

3,450

1,226

5,427

Less: Net income (loss) attributable to noncontrolling interest

(3

)

(6

)

29

(6

)

Net income (loss) attributable to MetLife, Inc.

(954

)

3,456

1,197

5,433

Less: Preferred stock dividends

30

30

91

91

Less: Preferred stock redemption premium

-

-

-

146

Net income (loss) available to MetLife, Inc.'s common shareholders

$

(984

)

$

3,426

$

1,106

$

5,196

MetLife, Inc.

(Unaudited) (1)

For the Three Months Ended

For the Nine Months Ended

September 30,

September 30,

2012

2011

2012

2011

Earnings Per Weighted Average Common Shares

Diluted (2), (3)

Earnings Per Weighted Average Common Shares

Diluted (2)

Earnings Per Weighted Average Common Shares

Diluted (2)

Earnings Per Weighted Average Common Shares

Diluted

(In millions, except per share data)

(In millions, except per share data)

Reconciliation to Net Income (Loss) Available to MetLife, Inc.'s Common Shareholders

Operating earnings available to common shareholders

$ 1,417

$ 1.32

$ 965

$ 0.91

$ 4,313

$ 4.03

$ 3,433

$ 3.21

Adjustments from operating earnings available to common shareholders to net income (loss) available

Book value per common share, excluding accumulated other comprehensive

income (loss) - (actual common shares outstanding)

$

47.70

$

46.50

Add: Accumulated other comprehensive income (loss) per common share

10.65

6.65

Book value per common share - (actual common shares outstanding)

$

58.35

$

53.15

Common shares outstanding, end of period (In millions)

1,062.6

1057.6

MetLife, Inc.

Reconciliations to Net Income (Loss) Available to Common Shareholders

(Unaudited)

For the Three Months Ended

For the Nine Months Ended

September 30,

September 30,

2012

2011

2012

2011

(In millions)

(In millions)

Total The Americas Operations:

Operating earnings available to common shareholders

$

1,230

$

780

$

3,516

$

2,819

Add: Net investment gains (losses)

31

108

198

202

Add: Net derivative gains (losses)

(65

)

2,910

629

3,086

Add: Goodwill impairment

(1,692

)

-

(1,692

)

-

Add: Other adjustments to continuing operations

(246

)

(287

)

(871

)

(692

)

Add: Provision for income tax (expense) benefit

328

(978

)

229

(954

)

Add: Income (loss) from discontinued operations, net of income tax

-

16

17

66

Less: Net income (loss) attributable to noncontrolling interest

-

3

1

3

Net income (loss) available to MetLife, Inc.'s common shareholders

$

(414

)

$

2,546

$

2,025

$

4,524

Retail (5):

Operating earnings available to common shareholders

$

492

$

214

$

1,369

$

891

Add: Net investment gains (losses)

53

48

178

134

Add: Net derivative gains (losses)

191

1,474

637

1,759

Add: Goodwill impairment

(1,692

)

-

(1,692

)

-

Add: Other adjustments to continuing operations

(254

)

(108

)

(622

)

(317

)

Add: Provision for income tax (expense) benefit

224

(494

)

153

(550

)

Add: Income (loss) from discontinued operations, net of income tax

-

8

10

37

Less: Net income (loss) attributable to noncontrolling interest

-

1

-

1

Net income (loss) available to MetLife, Inc.'s common shareholders

$

(986

)

$

1,141

$

33

$

1,953

Group, Voluntary & Worksite Benefits (5):

Operating earnings available to common shareholders

$

283

$

153

$

793

$

651

Add: Net investment gains (losses)

5

(15

)

11

(16

)

Add: Net derivative gains (losses)

(81

)

1,034

99

1,089

Add: Other adjustments to continuing operations

(33

)

(34

)

(107

)

(101

)

Add: Provision for income tax (expense) benefit

38

(343

)

(1

)

(340

)

Add: Income (loss) from discontinued operations, net of income tax

-

2

-

2

Less: Net income (loss) attributable to noncontrolling interest

-

-

-

-

Net income (loss) available to MetLife, Inc.'s common shareholders

$

212

$

797

$

795

$

1,285

Corporate Benefit Funding:

Operating earnings available to common shareholders

$

303

$

272

$

919

$

886

Add: Net investment gains (losses)

(25

)

83

21

85

Add: Net derivative gains (losses)

(194

)

447

(149

)

280

Add: Other adjustments to continuing operations

(3

)

(2

)

11

53

Add: Provision for income tax (expense) benefit

78

(185

)

41

(147

)

Add: Income (loss) from discontinued operations, net of income tax

-

6

7

27

Less: Net income (loss) attributable to noncontrolling interest

-

2

-

2

Net income (loss) available to MetLife, Inc.'s common shareholders

$

159

$

619

$

850

$

1,182

Latin America:

Operating earnings available to common shareholders

$

152

$

141

$

435

$

391

Add: Net investment gains (losses)

(2

)

(8

)

(12

)

(1

)

Add: Net derivative gains (losses)

19

(45

)

42

(42

)

Add: Other adjustments to continuing operations

44

(143

)

(153

)

(327

)

Add: Provision for income tax (expense) benefit

(12

)

44

36

83

Add: Income (loss) from discontinued operations, net of income tax

-

-

-

-

Less: Net income (loss) attributable to noncontrolling interest

-

-

1

-

Net income (loss) available to MetLife, Inc.'s common shareholders

$

201

$

(11

)

$

347

$

104

Asia (6):

Operating earnings available to common shareholders

$

259

$

222

$

839

$

621

Add: Net investment gains (losses)

(47

)

(34

)

(168

)

(196

)

Add: Net derivative gains (losses)

(31

)

168

(11

)

229

Add: Other adjustments to continuing operations

(15

)

(26

)

(11

)

2

Add: Provision for income tax (expense) benefit

27

(55

)

59

(14

)

Add: Income (loss) from discontinued operations, net of income tax

-

(11

)

-

(71

)

Less: Net income (loss) attributable to noncontrolling interest

8

1

25

1

Net income (loss) available to MetLife, Inc.'s common shareholders

$

185

$

263

$

683

$

570

EMEA (6):

Operating earnings available to common shareholders

$

62

$

65

$

212

$

204

Add: Net investment gains (losses)

73

(220

)

37

(304

)

Add: Net derivative gains (losses)

13

22

56

29

Add: Other adjustments to continuing operations

(12

)

(25

)

(22

)

(71

)

Add: Provision for income tax (expense) benefit

(32

)

84

(18

)

107

Add: Income (loss) from discontinued operations, net of income tax

-

-

-

-

Less: Net income (loss) attributable to noncontrolling interest

(5

)

(11

)

6

(6

)

Net income (loss) available to MetLife, Inc.'s common shareholders

$

109

$

(63

)

$

259

$

(29

)

Corporate & Other (1):

Operating earnings available to common shareholders

$

(134

)

$

(102

)

$

(254

)

$

(211

)

Add: Net investment gains (losses)

(35

)

91

(219

)

(11

)

Add: Net derivative gains (losses)

(635

)

1,096

(1,278

)

889

Add: Goodwill impairment

(176

)

-

(176

)

-

Add: Other adjustments to continuing operations

(199

)

(7

)

(715

)

(154

)

Add: Provision for income tax (expense) benefit

309

(400

)

778

(244

)

Add: Income (loss) from discontinued operations, net of income tax

-

3

-

4

Less: Net income (loss) attributable to noncontrolling interest

(6

)

1

(3

)

(4

)

Less: Preferred stock redemption premium

-

-

-

146

Net income (loss) available to MetLife, Inc.'s common shareholders

$

(864

)

$

680

$

(1,861

)

$

131

MetLife, Inc.

GAAP Interim Condensed Consolidated Statements of Operations

(Unaudited)

For the Three Months Ended

For the Nine Months Ended

September 30,

September 30,

2012

2011

2012

2011

(In millions)

Revenues

Premiums

$

9,096

$

9,342

$

27,386

$

27,190

Universal life and investment-type product policy fees

2,131

1,998

6,306

5,856

Net investment income

5,517

4,252

16,436

14,658

Other revenues

455

720

1,445

1,878

Net investment gains (losses):

Other-than-temporary impairments on fixed maturity securities

(57

)

(95

)

(310

)

(525

)

Other-than-temporary impairments on fixed maturity securities

transferred to other comprehensive income (loss)

10

(189

)

39

(5

)

Other net investment gains (losses)

69

229

119

221

Total net investment gains (losses)

22

(55

)

(152

)

(309

)

Net derivative gains (losses)

(718

)

4,196

(604

)

4,233

Total revenues

16,503

20,453

50,817

53,506

Expenses

Policyholder benefits and claims

8,943

9,018

26,958

26,376

Interest credited to policyholder account balances

2,102

738

5,681

4,104

Policyholder dividends

355

384

1,050

1,130

Goodwill impairment

1,868

-

1,868

-

Other expenses

4,245

5,198

13,341

13,987

Total expenses

17,513

15,338

48,898

45,597

Income (loss) from continuing operations before provision for income tax

(1,010

)

5,115

1,919

7,909

Provision for income tax expense (benefit)

(53

)

1,673

710

2,481

Income (loss) from continuing operations, net of income tax

(957

)

3,442

1,209

5,428

Income (loss) from discontinued operations, net of income tax

-

8

17

(1

)

Net income (loss)

(957

)

3,450

1,226

5,427

Less: Net income (loss) attributable to noncontrolling interests

(3

)

(6

)

29

(6

)

Net income (loss) attributable to MetLife, Inc.

(954

)

3,456

1,197

5,433

Less: Preferred stock dividends

30

30

91

91

Preferred stock redemption premium

-

-

-

146

Net income (loss) available to MetLife, Inc.'s common shareholders

$

(984

)

$

3,426

$

1,106

$

5,196

(1)

Certain amounts in the prior periods have been revised to conform with current period presentation. In the third quarter of 2012, MetLife, Inc. began reporting additional MetLife Bank operations as Divested businesses.

(2)

For the three and nine months ended September 30, 2012 and the three months ended September 30, 2011, all shares related to the assumed issuance of shares in settlement of the applicable purchase contracts of the common equity units have been excluded from the weighted average common shares outstanding - diluted, as these assumed shares would be anti-dilutive to operating earnings available to common shareholders per common share - diluted and net income available to MetLife, Inc.’s common shareholders per common share - diluted.

(3)

For the three months ended September 30, 2012, 6.0 million shares related to the assumed exercise or issuance of stock-based awards should be excluded from the weighted average common shares outstanding - diluted, as to include these assumed shares would be anti-dilutive to net income (loss) available to MetLife, Inc.'s common shareholders per common share - diluted. These shares were included in the calculation of operating earnings available to common shareholders per common share - diluted.

(4)

Book value per common share and book value per common share, excluding accumulated other comprehensive income (loss) exclude $2,043 million of equity related to preferred stock.

(5)

Certain amounts in prior periods have been revised to conform with current period presentation. In the third quarter of 2012, MetLife, Inc. further realigned certain products among its existing segments to better conform to the way it manages and assesses its business, and began reporting certain individual disability income and property & casualty products in the Retail segment, which were previously reported in the Group, Voluntary & Worksite Benefits segment.

(6)

Certain amounts in prior periods have been revised to conform with current period presentation. In the third quarter of 2012, MetLife, Inc. further realigned certain businesses among its existing segments to better conform to the way it manages and assesses its business, and began reporting the results of South Asia and India in the Asia segment, which were previously reported in the EMEA segment.